VANCOUVER, March 27, 2012 /CNW/ - Radiant Communications Corp. ("Radiant") (TSX-V:RCN), a leading provider of managed network and cloud hosting solutions for medium-size enterprises today announced its financial results for the fourth quarter and year ended December 31, 2011.
- Record revenue of $32.3 million for the year ended December 31, 2011 increased by 3.2% compared to revenue of $31.3 million for the year ended December 31, 2010. Fourth quarter revenue of $8.2 million increased by 2.9% compared to the fourth quarter of 2010.
- Gross margin was 39.1% for the year and 38.1% in the fourth quarter.
- EBITDA for the year ended December 31, 2011 was $1.3 million and EBITDA in the fourth quarter was $419,625. (see EBITDA section for the reconciliation of EBITDA to Net Income).
- The Net Loss for the year was $663,233 or $0.04 per share with a net profit of $20,392 or $0.00 per share in the fourth quarter.
- The Company ended the year with cash and short-term investments of $4.0 million and generated $689,376 of cash from operating activities during the year.
- During 2011 Radiant re-signed several existing customer relationships, continued to add new services with existing customers and sold new services to many small and medium businesses.
- In August of 2011 a decision was made to reorganize the company in order to better focus on strategic long term shareholder return with costs of restructuring activities of $523,377 expensed during the period.
- In September of 2011 Paul Healey was appointed Interim President and CEO
- On March 5, 2012, subsequent to the end of fiscal 2011, Paul Healey was appointed President and CEO by the Board of Directors.
"Radiant continues to benefit from a strong customer base with recurring revenue and a compelling value proposition," said Paul Healey, President and CEO. "2011 was a transitional year where we made adjustments to our tactical sales model and improved our suite of solutions for medium-sized enterprises. I am very pleased with our progress and our 2011 results provide evidence of the resilience and loyalty of our valued customers. We achieved record revenue and generated positive cash flow and EBITDA even as we made significant adjustments to our business processes. I look forward to continuing improvement in our results as our team delivers reliable, secure and scalable IT infrastructure services to our growing list of Canada's leading medium sized enterprises."
Earnings before Interest, Taxes, Depreciation and Amortization, is calculated as follows:
|($000s)|| Year ended
| Year ended
|Operating Income (loss)||$ (684)||$ 73|
|Stock-based compensation expense||60||129|
|EBITDA||$ 1,344||$ 1,407|
In the twelve months ended December 31, 2011 Radiant achieved positive EBITDA of $1.3 million compared to positive EBITDA of $1.4 million in the comparable period of 2010.
Radiant Communications is a leading provider of managed network and cloud hosting solutions for medium-size enterprises. Leveraging one of the largest Internet footprints across Canada, Radiant offers a comprehensive portfolio of reliable, secure and scalable IT infrastructure services, simplified under a single point of contact. For over 15 years, many of Canada's most recognized brand names have been relying on Radiant to support their mission-critical business operations.
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This press release may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Radiant, which involve risks and uncertainties. These risks and uncertainties may cause Radiant's actual results to differ materially from those contemplated by the forward-looking statements. Factors that might cause or contribute to such differences include, among others, competitive pressures, the growth rate of the Internet and telecommunications concerns, constantly changing technology and market acceptance of Radiant's products and services. Investors are also directed to consider the other risks and uncertainties discussed in Radiant's required financial statements and filings. All other companies and products listed herein may be trademarks or registered trademarks of their respective holders.
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For further information:
Investors: Chuck Leighton, CFO, 604.692.4531, [email protected]
Media: Janice Keay, Senior Director of Marketing, 416. 646.9416, [email protected]